Thank You All! A New Twist On Creativity
I would like to apologize to the community for staying away so long, but I have been busy. I would also like to thank the community for its unending encouragement of creative thinking. I took my knowledge and yours of cashflow with Real Estate and applied it to my Used Car lot. I know there are a few car dealers here like myself and would highly value your input. What I've done is created a cashflow from my existing inventory. I always used to buy a vehicle for x amount of $$ and sell for xxx + y to attain profit and was moderately successful at that. I've worked around the subprime arena and have studied the BHPH models. The end result has been Rent to Own. I did not invent this process, but have molded it a little. The major difference between traditional BHPH and my RTO (rent to own) is that I don't charge interest, and the customer is encouraged to return the vehicle at any time (Just like MH's). Bottom line is that my business has exploded! I've had to hire 2 PT employees, and it's running me ragged. But, I currently have 90+ vehicles, bringing in a much better return on the dollar than any of my rentals (Houses). The real beauty of this program is the fact that all of my inventory will be paid for in 21 months, and I can take my customers out those cars and put them in fresh units, have them pay for those, and sell/rent the old paid for units at 100% profit. The only problem I am having now is acquiring new funding for portfolio expansion. However, I have a meeting scheduled for tomorrow with my bankers to address these issues (wish me luck). Why I am writing this, I don't know, but I don't exactly have the kind of minds to share it with locally, and I thought folks here in the forum might appreciate what thinking out of the box could do for you. Anyway, enough rambling for now.
Good Luck,
Shawn(OH)
Very interesting, I would love to hear more about it if you get the chance.
Congratulations!
What a brilliant idea. I am currently (on fourm advice) reading Rich Dad Poor Dad and also have Cashflow Quadrant. It is inspiring to hear that people can really do well by not following normal standards. Good luck with everything!!!
Kim
LoanWizard,
I was int the car business for 20+ years and have also had my own used car lot. Kudos to your success thus far. If your banker turns a deaf ear to you, look at all the companies that advertise in publications like the Automotive News, etc. that look for good paying portfolios.
Seems to me if you give them a good presentation on your business they will see the similarities to the BHPH craze and be interested. Good Luck.
Dave
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"Opportunity is missed by most people because it is dressed in overalls and looks like work." (Thomas A. Edison)[ Edited by dealfinder on Date 09/02/2004 ]
LoanWizard,
Forgot to tell you, John$Cash$Locke is also a previous car guy. It would be interesting to hear his take on this.
Dave
[addsig]